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TAX SHELTER PENALTIES BRING DOWN JENKENS AND GILCHRIST
March 29, 2007
Jenkens and Gilchrist rode the 1990s tax shelter boom to great wealth. Today they rode it back to earth.
The firm today agreed to pay $76 million in penalties to the IRS for its tax shelter activities - penalties that doom the firm. From a Department of Justice press release:
The firm has acknowledged not only that its tax shelter practice was fraudulent and caused serious harm to the United States Treasury, but also that the practice caused such harm to the firm’s reputation and revenues that it cannot survive as a going concern. The demise of Jenkens & Gilchrist demonstrates that a lucrative but fraudulent tax shelter practice may provide short-term financial rewards, but at a great long-term cost."
Wow. What a way to go out. While this will put a lot of Jenkens and Gilchrist attorneys on the street, the recriminations promise employment to other lawyers for years to come.
Paul Daugerdas, pictured above, was one of the Jenkens attorneys in the tax shelter practice; we blogged about one of his shelters earlier today. He probably isn't the most popular guy around the office right now.
The TaxProf has coverage and a full set of links.
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Comments
"...caused serious harm to the United States Treasury..."??? I doubt it.
Posted by: Brent | March 29, 2007 7:35 PM